Prospects for an integrated North Africa energy market: Opportunities and lessons

• North African countries are endowed with very diverse energy resources; considerable potential for regional energy trade.
• Energy integration, if executed properly, can lead to a more general economic integration.
• North African policy makers to draw lessons from European Coal and Steel Community to achieve deeper economic integration.
• Political will is essential to achieve regional integration.

North African countries have a diverse resource base with some dependent on energy imports and others dependent on energy exports. This, in addition to the rapid growth in demand and the diversity of the supply structure, could generate considerable potential for regional energy trade that could lead to more significant regional economic integration. To benefit from these opportunities in the wake of the Arab spring, North African Governments should consider launching a coordinated policy and a harmonized regulatory regime in support of regional integration of their energy systems and subsequently of other sectors of their economies. The experience of the European Coal & Steel Community (ECSC), that has in turn triggered and nurtured strong institutional, policy, legal and regulatory frameworks (and in some instances convergence) may carry lessons for North African countries as they are struggling to implement often overly ambitious plans for a comprehensive regional integration strategy.